Question
Consider the following statement about Scheduled
Banks: I. Any bank which is listed in the 2nd schedule of the Reserve Bank of India Act, 1934 is considered a scheduled bank. II. The Schedule consists of those banks which satisfy various parameters, criteria under clause 42 of this act. III. To qualify as a scheduled bank, the paid-up capital and collected funds of the bank must not be less than Rs. 1 lakh. Which of the above statement is/are not correct?Solution
By definition, any bank which is listed in the 2nd schedule of the Reserve Bank of India Act, 1934 is considered a scheduled bank. The Schedule consists of those banks which satisfy various parameters, criteria under clause 42 of this act. To qualify as a scheduled bank, the paid-up capital and collected funds of the bank must not be less than Rs5 lakh.
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